Re: Anyone get in on Game Stop stock? Closed 2020 @18.87 Today at 347.51

by **InTenSity** 2021-03-10, 12:51

CORNER BLITZ wrote:
InTenSity wrote:
Can you ELI5 here?

The shares are just the one standard share you think of with a stock. So he's got 100,000 of those at an average price of $26.79/share. Anything above that he makes money when he sells and anything below that he technically loses money but still has whatever the price of the stock is times 100,000 worth of cheddah.

The call is him "betting" (he did a lot of research but we'll still call it a bet since they're riskier) that in mid April the price of $GME would be over $12. He bought those back when the stock was like $3/share and being overly shorted. Options more risky since you lose everything you put in (or maybe more) if you miss...but you can also gain exponentially more. You basically have the option to buy/sell a stock at a certain price on a certain date.

There's 4 ways to go with options, but the way he went it was lose all money put in if it's not $12 OR gains if over $12. Options are also not per share but per 100 shares....so he's got the option to buy 500x100 = 50,000 shares at $12 in mid april - generally people sell those options instead of going all the way to the date of the option. It's worth a fuck load now since he bought it so far out and somewhat saw this coming. His guess was high $30/40s I think. Partied it up when it was $60.

Thank you for the explanation. It was the option call that I wasn't sure about. Well, there is a lot I'm not sure about, which is why I stay out of the stock market, but holy shit, he has that $12 option...

by gomersbro 2023-02-24, 10:43

Anyone have any interesting investment ideas? I stumbled into some money (not complaining) but not sure what to do with it. Right now it is sitting in Vanguard Money Market earning 4%, and with the market going sideways and potentially down, maybe I am happy with that. But if someone has something that they think may have some better upside, I would definitely look into it.

by **Floyd Robertson** 2023-02-24, 10:54

gomersbro wrote:Anyone have any interesting investment ideas? I stumbled into some money (not complaining) but not sure what to do with it. Right now it is sitting in Vanguard Money Market earning 4%, and with the market going sideways and potentially down, maybe I am happy with that. But if someone has something that they think may have some better upside, I would definitely look into it.

If you want something very safe, earning twice as much, with inflation protection check into Treasury Series I bonds.

by **Motown Spartan** 2023-02-24, 10:56

Floyd Robertson wrote:
gomersbro wrote:Anyone have any interesting investment ideas? I stumbled into some money (not complaining) but not sure what to do with it. Right now it is sitting in Vanguard Money Market earning 4%, and with the market going sideways and potentially down, maybe I am happy with that. But if someone has something that they think may have some better upside, I would definitely look into it.

If you want something very safe, earning twice as much, with inflation protection check into Treasury Series I bonds.

Limited to $10k per social security number. FYI

by **Floyd Robertson** 2023-02-24, 10:57

Motown Spartan wrote:
Floyd Robertson wrote:

If you want something very safe, earning twice as much, with inflation protection check into Treasury Series I bonds.

Limited to $10k per social security number. FYI

Good point. That's $10k per year I believe.

by **Travis of the Cosmos** 2023-02-24, 11:07

It all depends on time horizon and the risk you’re willing to take and what not, but personally I just use index funds. I don’t worry about beating the market and all that, I just get exactly what the market gets and since it requires little management it’s very cheap fee wise.

by **Motown Spartan** 2023-02-24, 11:09

One word: plastics

by **Motown Spartan** 2023-02-24, 11:20

gomersbro wrote:Anyone have any interesting investment ideas? I stumbled into some money (not complaining) but not sure what to do with it. Right now it is sitting in Vanguard Money Market earning 4%, and with the market going sideways and potentially down, maybe I am happy with that. But if someone has something that they think may have some better upside, I would definitely look into it.

PCOXX is a Money Market Mutual Fund currently paying 4.62% if you're looking for a cash equivalent.

SMH is a semi-conductor ETF which is looking at some serious upside potential.

How much risk are you willing to take? What is your future use for the money?

by **kingstonlake** 2023-02-24, 11:50

I took a flyer on MULN. Currently a train wreck. From what I can tell they’ve struggled to deliver vehicles. A lot of their losses are from dumping into R&D. Information is sketchy but it appears they are doing a lot of research on lithium air technology. The theory is it’s the next big leap in battery technology if it can be developed. I know Tesla is researching it as well. The refinement of the technology would be a huge leap for EV’s. Definitely an invest a grand and let it set for 15 years type thing. Currently about .25¢ a share. High risk.

by **tGreenWay** 2023-02-24, 12:05

Whatever Elon tells me to buy.

by **Robert J Sakimano** 2023-02-24, 12:24

invest in latex.

Trust me on this one.

by **tGreenWay** 2023-02-24, 13:22

Buy stock in urethra stents.

by gomersbro 2023-02-24, 13:48

Floyd that is good with the I Bonds. Maybe I will max that out and then look for something more adventurous with the rest.

Travis, usually I am like you with the mutual funds, but this is gift money and the market feels overpriced to me. I don't really feel like watching it go down or even treading water for few years. Ideally this money would form the basis of me retiring a few years earlier than I originally planned.

Kingston I will look at MULN. I have been thinking about BLDP a PEM fuel cell company out of Canada. I think (maybe hope is the right word) that eventually fuel cells overtake full EVs. But there is always something in my research that keeps me from buying. Maybe the "winning" fuel cell company one that isn't even publicly traded yet.

Motown SMH looks interesting.

Thanks everyone. Looks like I have some things to look at this weekend.

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